“Can Bitcoin be treated as a fiat currency?”

Kirill Rodin

Abstract

This paper will seek to analyze whether Bitcoin, as a digital decentralized cryptocurrency, can be considered a form of money from a traditional economic perspective, and whether it may serve as an alternative to other fiat currencies. The article will split into two sections – the first will provide an explanation of the Bitcoin system, namely, its functions and origins; the second will provide analysis as to the extent to which it relates to the traditional functions of money. The paper will conclude with a summary of the author’s normative assessment of bitcoin as a form of money, and the risks its implementation as fiat currency pose.